MINNESOTA STATUTES 1945 3525 ESTATES IN REAL 500.05

PART II Private Rights Property Interests and

CHAPTER 500

ESTATES IN REAL. PROPERTY Sec. 500.01 Division as to quantity 500.14 Future estates; construction, validity, and 500.02 Estates of effect of creating Instruments 500.03 Effect of conveyance to grantee in fee tail 500.15 Future estates; protection from destructibility 500.04 Conveyance by owner of fee tail rules 500.05 Division of realty or personalty 500.16 Alienability and descendibility of expectant 500.06 Division, as to time estates including reversionary possibilities 500.07 Estates in 500.17 Future estates; rents and profits 500.08 Estates in expectancy 500.18 Commencement of expectant estates 500.09 Reversions 500.19 Division 500.10 Future estate; statutory remainders 500.20 Defeasible estates 500.11 Future estates; inclusiveness 500.21 Application to ground lease 500.12 Future estates; vested or contingent 500.22 Restrictions on acquisition of 500.13 Future estates;, restrictions on creation

500.01 DIVISION AS TO QUANTITY. Estates in lands are divided into estates of inheritance, estates for life, estates for years, and estates at will and by suffer­ ance. . [R. L. 8. 3191] (80S2) 500.02 ESTATES OF INHERITANCE. Every estate of inheritance shall con­ tinue to be termed a , or fee; and every such estate, when not defeasible or conditional, shall be a fee simple absolute or an absolute fee. IR. L. s. 3192] (803S) 500.03 EFFECT OF CONVEYANCE TO GRANTEE IN FEE TAIL. In all cases where any person, if this chapter had not been passed, would at any time hereafter become seized in fee tail of any lands, tenements, or hereditaments by virtue of any devise, , grant, or other conveyance heretofore made, or hereafter to be made, or by any other means, such person, instead of becoming seized thereof in fee tail, shall be deemed and adjudged to be seized thereof as in fee simple. [R. L. S. 3193] (8034) 500.04 CONVEYANCE BY OWNER OF FEE TAIL ESTATE. Where lands, tenements, or hereditaments heretofore have been devised, granted, or otherwise conveyed by a tenant in tail, and the person to whom such devise, grant, or other conveyance has been made, his heirs or assigns, have from the time such devise took effect, or from the time such grant or conveyance was made, to the day of passing this chapter, been in the uninterrupted possession of such lands, tenements, or hereditaments, and claiming and holding the same under or by virtue of such devise, grant, or other conveyance, they shall be deemed as good and legal to all intents and purposes as if such tenant in tail had, at the time of making such devise, grant, or other conveyance, been seized in fee simple of such lands, tenements, or heredita­ ments, any to the contrary notwithstanding. LR. L. s. 31941 (8035) 500.05 DIVISION OF REALTY OR PERSONALTY. Estates of inheritance and for life shall be denominated estates of ; estates for years shall be denominated chattels real; and estates at will or by sufferance shall be chattel interests, but shall not be liable as such to sale on execution. An estate for the life of a third person, whether limited to heirs or otherwise, shall be deemed a freehold only during the life of the grantee or devisee, but after his death it shall be deemed a chattel real. IR. L. ss. 8195, 31961 (8036, 8037)

MINNESOTA STATUTES 1945 500.06 ESTATES IN 3526

500.06 DIVISION AS TO TIME. Estates, as respects the time of their enjoy­ ment, are divided into estates in possession and estates in expectancy. [B. L. s. 3197] (8038) ' 500.07 ESTATES IN POSSESSION. An estate in possession is where the owner has an immediate right to the possession of the land; an estate in expectancy is where the right to the possession is postponed to a future period. [B. L. s. 3197] (8038) 500.08 ESTATES IN EXPECTANCY. Estates in expectancy are divided into, (1) reversions, and (2) estates commencing at a future day, denominated future estates. All expectant estates, except such as are enumerated and defined in this chapter, are abolished. IB. L. ss. 3198, 3231] (8039, 8072) 500.09 REVERSIONS. A is- the residue of an estate left in the grantor, or his heirs, or in the heirs of a testator, commencing in possession on the determination of a particular estate granted or devised. [72. L. S. 3201] (8042) 500.10 FUTURE ESTATE; STATUTORY REMAINDERS. A future estate is an estate limited to commence in possession at a future day, either without the intervention of a precedent estate, or on the determination, by lapse of time or other­ wise, of a precedent estate created at the same time. IB. L. s. 3199] (8040) . ' 500.11 FUTURE ESTATES; INCLUSIVENESS. Subdivision 1. remainders. When a future estate is dependent upon a precedent estate, it may be termed a , and may be Created and transferred by that name. When a remainder on an estate for life or for years is not limited on a contin­ gency defeating or avoiding such precedent estate, it shall be construed as intended to take effect only on the death of the first taker, or at the expiration, by lapse.of time, of such term of years. Subdivision 2. Conditional limitations; shifting interests. A remainder may be limited on a contingency which, in case it should happen, will operate to abridge or determine the precedent estate; and every such remainder shall be construed a conditional limitation, and have the same effect as such limitation would have by law. Subdivision 3. Springing interests. Subject to the rules established in this chapter, a freehold estate, as well as a chattel real, may be created to commence at a future day; an estate for life may be created in a term of years, and a remainder limited thereon. LB. L. ss. 3200, 3213, 3216, 3218] (8041, 8054, 8057, 8059) 500.12 FUTURE ESTATES; CONTINGENT. Future estates are either vested or contingent. They are contingent while the person to whom, or the event upon which, they are limited to take effect remains uncertain. IB. L. s. 3202; 1943 c. 69 s. 1] (8043) 500.13 FUTURE IESTATES; RESTRICTIONS ON CREATION. Subdivision 1. Effect of suspension of power of alienation. Every future estate is void in its creation, which suspends the absolute power of alienation for a longer period than is prescribed in this chapter; such power of alienation is suspended when there are no persons in being by whom an absolute fee in possession can be conveyed. Subdivision 2. Limit of suspension; exception. The absolute power of aliena­ tion shall not be suspended, by any limitation or condition, for a longer period than during the' continuance of two lives in being at the creation of the estate, except that a contingent remainder in fee may be created on a prior remainder in fee, to take effect in the event that the persons to whom the first remainder is limited die under the age of 21 years, or upon any other contingency by which the estate of such persons may be determined before they attain their full age. Subdivision 3. Allowable successive life estates. Successive estates for life shall not be limited unless to persons in being at the creation thereof; and, when a remainder is limited on more than two successive estates for life, all the life estates subsequent to those of the two persons first entitled thereto shall be void; and upon the death of those persons the remainder shall take effect in the same manner as if no other had been created. Subdivision 4. Remainder following estate pur autre vie. No remainder shall be created upon an estate for the life of any other person than the grantee or

MINNESOTA STATUTES 1945 3527 ESTATES IN REAL PROPERTY 500.15 devisee of such estate, unless such remainder is in fee; nor shall any remainder be created upon such estate in a term for years, unless it is for the whole residue of the term. When a remainder is created upon any such life estate, and more than two persons are named as the persons during whose lives the estate shall continue, the remainder shall take effect upon the death of the two persons first named, in the same manner as if no other lives had been introduced. Subdivision 5. Contingent remainder following a term. A contingent remainder shall not be created on a term of years, unless the nature of the contingency upon which it is limited is such that the remainder must vest in interest during the continuance of not more than two lives in being at the creation of such remainder, or upon the termination thereof. Subdivision 6. Remainder for life following a term. No estate for life shall be limited as a remainder on a term of years, except to a person in being at the creation of such estate. Subdivision 7. Application of restrictions to chattels real. All of the provisions in this chapter contained relative to future estates shall be construed to apply to limitations of chattels real as well as freehold estates, so that the absolute of a term of years shall not be suspended for a longer period than the absolute power of alienation can be suspended in respect to a fee. LR. L. ss. 3203, 3204, 3205, 3206, 3207, 3208, 3209, 3210, 32121 (8044, 8045, 8046, 8047, 80^8, 8049, 8050, 8051, 8053) 500.14 FUTURE ESTATES; CONSTRUCTION, VALIDITY, AND EFFECT OF CREATING INSTRUMENTS. Subdivision 1. Failure of heirs or issue. Unless •a different intent is effectively manifested, whenever property is limited upon the death of any person without "heirs" or "" or "issue" general or special, or "descendants" or "offspring" or "children" or any such relative described by other terms, the limitation is to take effect only when that person dies not having such relative living at the time of his death, or in gestation and born alive thereafter, and is not a limitation to take effect upon the indefinite failure of such relatives; nor, unless a different intent is effectively manifested, does the limitation mean that death without such relative is restricted in time to the lifetime of the creator of the interest. Subdivision 2. Alternative future estates. Two or more future estates may also be created, to take effect in the alternative, so that if the first in order fails to vest the next in succession shall be substituted for it, and take effect, accordingly. Subdivision 3. Probability of contingency. No future estate, otherwise valid, shall be void on the ground of the probability or improbability of the contingency on which it is limited to take effect. Subdivision 4. Certain remainders vest by purchase. When a remainder is limited to'the heirs, or heirs of the body, of a person to whom a life estate in the same premises is given, the persons who, on the termination of the life estate, are the heirs or heirs of the body of such tenant for life shall be entitled to take as purchasers, by virtue of the remainder so limited to them. No conveyance, transfer, devise, or bequest of an interest, legal or equitable, in real or , shall fail to take effect by purchase because limited to a person or persons, how­ soever described, who would take the same interest by descent or distribution. Subdivision 5. Posthumous children as remaindermen. When a future estate is limited to heirs, or issue, or children, posthumous children shall be entitled to take in the same manner as if living at the death of their parent. Subdivision 6. Effect of posthumous birth on event of "death without issue." A future estate, depending on the contingency of the death of any person without heirs or issue or children, shall be defeated by the birth of a posthumous child of such person capable of taking by descent. [K. L. ss. 3211, 3214, 3215, 3217, 3219, 3220; 1939 c. 90; 1939 c. 378] (8052-1, 8055, 8056, 8058, 8060, 8061) 500.15 FUTURE ESTATES; PROTECTION FROM DESTRUCTD3n,ITY RULES. Subdivision 1. Destruction of precedent estate by act of its owner. No expectant estate can be defeated or barred by any alienation or other act of the owner of the intermediate or precedent estate, nor by any destruction of such precedent estate, by disseizen, forfeiture, surrender, merger, or otherwise. Subdivision 2. Exception. Subdivision 1 shall not be construed to prevent an

MINNESOTA STATUTES 1945 500.16 ESTATES IN REAL PROPERTY 3528

expectant estate from being defeated in any manner, or by any act or means, which the party creating such estate has, in the creation thereof, provided or authorized; nor shall an expectant estate thus liable to be defeated be on that ground adjudged void in its creation. Subdivision 3. Premature determination .of precedent estate. No remainder, valid in its creation, shall be defeated by the determination of the precedent estate before the happening of the contingency on which the remainder is limited to take effect; but, should-such contingency afterward happen, the remainder shall take effect in the same manner and to the same extent as if the precedent estate had continued to the same period. IB. L. ss. 3221, 3222, 3223] (8062, 8063, '806J,) 500.16 ALIENABILITY AND DESCENDIBILITY OF EXPECTANT ESTATES INCLUDING REVERSIONARY POSSD3ILITD3S Expectant estates are descend­ ible, devisable, and alienable in the same manner as estates in possession; and hereafter contingent rights of reentry for breach of conditions subsequent, and rights to possession for breach of conditions subsequent after breach but before entry made, and possibilities of reverter, shall be descendible, devisable, and alien­ able in the same manner as estate in possession. [R. L. s. 3224; 1937 c. 487 s. 21 (8065) 500.17 FUTURE ESTATES; RENTS AND PROFITS. Subdivision 1. Disposal; rules governing. Dispositions of the rents and profits of lands, to accrue and be received at any time subsequent to the execution of the instrument creating such disposition, shall be governed by the rules established in this chapter in relation, to future estates in lands. Subdivision 2. Accumulation. An accumulation of rents arid profits of , for the benefit of one or more persons, may be directed by any will or sufficient to pass real estate, as follows: (1) If such accumulation is directed to commence on the creation of the estate out of which the rents and profits are to arise, it must be made for the benefit of one or more minors then in being, and terminate at the expiration of their minority; (2) If such accumulation is directed to commence at any time subsequent to the creation of the estate out of which the rents and profits are to arise, it shall commence within the time in this chapter permitted for the of future estates, and during the minority of the persons for whose -benefit it is directed, and shall terminate at the expiration of such minority. Subdivision 3. Restrictions on accumulation. If, in either of the cases men­ tioned in subdivision 2, the direction for such accumulation is for a longer time than during the minority of the persons intended to be benefited thereby, it shall be void as to the time beyond such minority, and all directions for the accumulation of the rents and profits of real estate, except such as are herein allowed, shall be void. Subdivision 4. Support of minor beneficiaries. When such rents and profits are directed to be accumulated for the benefit of infants entitled to the expectant estate, and such infants are destitute of other sufficient means of support and educa­ tion, the district court, upon the application of their guardian, may direct a suitable sum, out of such rents and profits, to be applied to their maintenance and education. Subdivision 5. 'Ownership in case of valid suspension of the power of alienation. When, in consequence of a valid limitation of an expectant estate, there is a suspension of the power of alienation, or of ownership, during the continuance of which the rents and profits are undisposed of, and no valid direction for their accumulation is given, such rents and profits shall belong to the person presump­ tively entitled to the next eventual estate. [R. L. SS. 3225, 3226, 3227, 3228, 32291 (8066, 8067, 8068, 8069, 8070) 500.18 COMMENCEMENT OF EXPECTANT ESTATES. The delivery of the grant, where an expectant estate is created by grant, and, where it is created by devise, the death of the testator, shall be deemed the time of the creation of the estate. [E. L. s. 32301 (8071) 500.19 DIVISION, Subdivision 1. According to number. Estates, in respect to the number and connection of their owners, are divided into estates in severalty, in joint tenancy, and in common; the nature and of which, respectively, shall continue to be such as are now established by law, except so far as the same may be modified by the provisions of this chapter.

MINNESOTA STATUTES 1945 3529 ESTATES IN REAL PROPERTY 500.22

Subdivision 2. Construction of grants and devises. All grants and devises of lands, made to two or more persons, shall be construed to create estates in common, and not in joint tenancy, unless expressly declared to be in joint tenancy. This section shall not apply to mortgages, nor to devises or grants made in trust, or to executors. [22. L. ss. 3232, 32331 (8073, 8074) 500.20 DEFEASIBLE ESTATES. Subdivision 1. Normal conditions and limita­ tions. When any conditions annexed to a grant, devise or conveyance of land are, or shall become, merely nominal, and of no actual and substantial benefit to the party or parties to whom or in whose favor they are to be performed, they may be wholly disregarded; and a failure to perform the same shall in no case operate as a basis of forfeiture of the lands subject thereto. Subdivision 2. Restriction of duration of condition. All covenants, conditions, or restrictions hereafter created by any other means, by which the title or use of real property is affected, shall cease to be valid and operative 30 years after the date of the deed, or other instrument, or the date of the probate of the will, creating them; and after such period of time they may be wholly disregarded. Subdivision 3. Time to assert power of termination. Hereafter any right to reenter or to repossess'land on account of breach made in a condition subsequent shall be barred unless such right is asserted by entry or action within six years after the happening of the breach upon which such right is predicated. [R. L. S. 3234; 1937 C. 487 S. 11 (8075) 500.21 APPLICATION TO GROUND LEASE. The provisions of sections 500.16 and 500.20 shall not apply to so-called ground leases providing for the construction by the lessee of buildings or other structures upon the lands of the lessor. 11937 C. 487 s. 31 (8075-1) 500.22 RESTRICTIONS ON ACQUISITION OF TITLE. Subdivision 1. By aliens and non-American . Except as hereinafter provided, no person, unless he be a citizen of the or has declared his intention to become a citizen, and no , unless created by or under the of the United States or of some state thereof; shall hereafter acquire lands, or any interest therein, exceeding 90,000 square feet, except such as may be acquired by devise or inheri­ tance, and such as may be held as security for indebtedness. .The provisions of this section shall not apply to actual settlers upon farms of not more than 160 acres, or to citizens or subjects of a foreign country whose rights to hold land are secured by treaty. Subd. 2. Corporations having alien stockholder. Except as hereinafter pro­ vided, no corporation or association, more than 20 per cent of whose stock is owned by persons not citizens of the United States, or by corporations or associations not created under the laws of the United States or some state thereof, shall acquire lands in this state. Subd. 3. Corporations engaged in farming. Except as hereinafter provided, no corporation organized for and engaged in any farming operations, shall acquire more than 5,000 acres of land. Subd. 4. Exceptions. The prohibitions of subdivisions 1, 2, and 3 shall not apply to lands acquired by process of law in the collection of debts, or by any procedure for "the enforcement of a or claim thereon, whether created by mortgage or otherwise; provided, that all lands so acquired be disposed of within ten years after acquiring title thereto; nor to any corporation actually engaged in manufacturing in this State, but such corporation may hold such lands as may be reasonably necessary in the carrying on of its business, provided, that all lands so held by such corporation actually engaged in manufacturing in this State, shall be disposed of within ten years after it shall cease to use the same for the purposes of its business. Subd. 5. Effect of violations. All lands acquired or held in violation of subdi­ vision 1 to 4 shall be forfeited to the state and the attorney general shall enforce such forfeiture; but no such forfeiture shall be adjudged unless the action to enforce the same be brought within three years after such property has been so acquired or so held by such alien or corporation; and no title to land shall be invalid or liable to forfeiture by reason of the alienage of any former owner or person interested therein. IR. L. ss. 3235, 3236, 3237, 3238, 3239; 1907 c. 439; 1911 C. ISO S. 1; 1945 C 280 8. 1] (8076, 8077, 8078, 8079, 8080)